All Forum Posts by: Tyler Lingle

Great tips! A longer days on market property always could be a candidate. Failed flips too! 

My advice to Out of State BRRRR-ers is to evaluate firstly if turnkey, in the line of development is not a better use of your time and resources. Secondly, take multiple trips out to our market. Thirdly, make long term relationships based on relationship equity versus quick transactional relationships. It takes a lot of TRUST to win out of state and BRRRR. Speaking from experience helping many out of state investors navigate this process...

Quote from @Joe Villeneuve:

My first tip is to not set a goal of 1 property per year.  It will cause you to make bad choices.  Your goals should be specific and financial.

 If this goal makes it easy in my brain to actually execute year after year... it will lead to financial gain. Practical = Actionable = Results. But I totally see where you're coming from!

Quote from @Adam Servies:

Tyler - I would check out Central Indiana Real Estate Investors Association (CIREIA - https://cireia.wildapricot.org) if you haven't already. I'm attending their monthly meeting tomorrow evening and it looks like they have other regular meetings and events.

 I don't love CIREA but too be honest I probably didn't give it a fair shake. High proportion of newer investors learning versus serious action takers. Again, I might be wrong but that is feedback I'm noticing from a lot. Which is partially why I started my own community and do my own meet ups! 

Quote from @Chris B.:

All three of those are REAL problems and can even be real problems in state also.  The rental business has many facets.  It can be honed to be relative easy to deal with but that's with an upskilled person / team.  My advice for anyone entering the market, not only study up, but get yourself a mentor with good experience.  This will save you years of learning and mistakes.  Investors not having the appropriate skill set, personality, and knowledge and deciding to just jump in - trouble.  Managing out of state yourself with no help.  How do you do this?  Do you fly in for everything that needs management oversight?  This may be illegal in some states and you frequently at least need an in-state official representative.  Agents leading us astray?  I know that that none the amazing agents here will lead someone astray, but this certainly is way more common than I'd like it to be in general.

I agree. I, as well as other agents on here, do have much better reputations! It also leads to accountability. Reviews on BP for example. This is why I also don't recommend using the property manager as your agent. Their revenue stream is typically from managing the property, not specializing in selling. To make the correct buy, you should operate with a trusted partner (realtor) who specializes in doing just that day in and day out, with high accountability. 

Quote from @Vadim F.:

Quote from @Tyler Lingle:

I'm the listing agent on now 3 current failed OOS investments. In each scenario there were patterns I noticed: 

- The investor bit off a large rehab with almost no experience managing rehabs before in their real estate career (sounds smart to do the first one miles away right?)

- The investor managed it themselves from OOS. 

- The investor took their Realtor, Lender, Property Manager at face value, and were clearly taken advantage of. 

Personally, I would NEVER invest out of state without AMPLE experience investing close to home. The reality is, absolutely nobody will care for your property as much as you will. Having eyes on it (accountability) is huge. Additionally, I think it's always wise to cast your net wise and talk to a few realtors, property managers, etc at the beginning, and earnestly seek feedback, rather than going with the voices that confirm everything you already think. Always ask, "What could I be missing here?"

I'm curious, when do you think (if ever) it's smart to invest Out-of-State? 

Pretty certain those investors saw some viral videos and thought it was easy. If you don't have a solid team in place, you will get burned.

 Agreed. You have to be in it to learn for the long haul. It can be done but you need to probably visit your OOS area multiple times (IMO). 

I'm the listing agent on now 3 current failed OOS investments. In each scenario there were patterns I noticed: 

- The investor bit off a large rehab with almost no experience managing rehabs before in their real estate career (sounds smart to do the first one miles away right?)

- The investor managed it themselves from OOS. 

- The investor took their Realtor, Lender, Property Manager at face value, and were clearly taken advantage of. 

Personally, I would NEVER invest out of state without AMPLE experience investing close to home. The reality is, absolutely nobody will care for your property as much as you will. Having eyes on it (accountability) is huge. Additionally, I think it's always wise to cast your net wise and talk to a few realtors, property managers, etc at the beginning, and earnestly seek feedback, rather than going with the voices that confirm everything you already think. Always ask, "What could I be missing here?"

I'm curious, when do you think (if ever) it's smart to invest Out-of-State? 

Yes patio amenities affect buyer choices. Value add. Just be weary of how much it costs. That's crucial. 

@Nick Giulioni's construction management is great! He's a super knowledgeable guy on Indy investing in general. 

Class C = Lower price = Better spreadsheet -> Hidden CapEx and higher turnover. I saw that one. It looked like a pain in the neck to own and positioned on an odd lot. If I wouldn't live there I can't recommend owning as a rental personally. My two cents!